Wedbush Lowers Netflix (NASDAQ:NFLX) Price Target to $105.00

Netflix (NASDAQ:NFLX) had its price target dropped by analysts at Wedbush from $118.00 to $105.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has an “outperform” rating on the Internet television network’s stock. Wedbush’s price target suggests a potential upside of 52.28% from the company’s previous close.

Several other analysts have also weighed in on the company. KeyCorp restated an “overweight” rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a report on Monday, July 13th. The Goldman Sachs Group set a $94.00 target price on Netflix and gave the stock a “buy” rating in a report on Friday. Pivotal Research dropped their price target on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday. Seaport Research Partners upped their price target on shares of Netflix from $115.00 to $119.00 and gave the company a “buy” rating in a report on Friday, April 17th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Netflix in a report on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and sixteen have assigned a Hold rating to the stock. Based on data from MarketBeat, Netflix has an average rating of “Moderate Buy” and an average price target of $103.97.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $68.95 on Friday. The stock has a market cap of $290.33 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 0.88 and a beta of 1.52. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. Netflix has a 12 month low of $65.08 and a 12 month high of $126.71. The stock’s 50 day moving average price is $80.15 and its 200 day moving average price is $86.90.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.83% and a net margin of 28.22%.The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period last year, the company posted $0.72 EPS. The firm’s quarterly revenue was up 13.4% on a year-over-year basis. Equities research analysts anticipate that Netflix will post 3.6 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares in the company, valued at $338,721.80. The trade was a 98.99% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the business’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 899,839 shares of company stock worth $80,141,661. 1.24% of the stock is owned by insiders.

Institutional Trading of Netflix

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp boosted its holdings in shares of Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after buying an additional 89,558,684 shares during the period. Capital World Investors increased its position in shares of Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley increased its position in shares of Netflix by 903.0% in the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after acquiring an additional 76,840,318 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has strong long-term upside from margin expansion, advertising growth, and new engagement-driven content formats. Mark Mahaney Reiterates Buy on Netflix
• Positive Sentiment: Supportive commentary highlighted Netflix’s AI, ads, short-form video, and gaming strategy as potential growth catalysts for monetization and engagement. Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX
• Neutral Sentiment: Several analysts cut price targets but mostly kept buy/overweight or hold ratings, signaling lower near-term expectations rather than a full thesis break. Laura Martin Maintains Buy on Netflix
• Negative Sentiment: Netflix’s weaker Q3 outlook and reduced engagement disclosure sparked concern that growth is slowing and management is becoming less transparent with investors. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: Coverage across the market emphasized the post-earnings selloff, citing a revenue miss, soft guidance, and investor worries about future growth and competition. U.S. Chip Stocks Extend Slide; Netflix Tumbles on Growth Warning

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.